What is Bitcoin?

Bitcoin is a currency which is used to buy anything online. This is not a physical currency or something which will be stored in your wallet or something. But it can be stored online and it is logical.

This bitcoin was invented by Satoshi Nakamoto. He was from Japan and bit coin was introduced on 3 January 2009. This was the actual date when it was introduced.

The value of 1 Bitcoin is 63,949 Rs (INR) and 923$ (USD) approx. Some years back this currency value increased to 1200$. There is no specific authority to calculate the Bitcoin or something.

The price of the Bitcoin keeps on fluctuating and there is no one who can say that this much should be the value. This currency is same in every country and you can exchange this bitcoins easily.

Let’s take a small example:

Suppose I am having Nexus 6P and the value of the phone is 626 $ or we can say 42,000 INR then I can simply give my phone to the user and he will simply give me 1Bitcoin.

You can now store that bitcoin on your mobile phone or else on your computer or anywhere electronically.

Now, you can keep that 1 Bitcoin or else you can simply mine that Bitcoin and the mining are again a different thing which I will tell you below. What are mining and explanation?

The Supply Growth of Bitcoin is also fixed and till that time this value will be the value of Bitcoins and it will never get changed in the future. There will be only 21 Million Bitcoins. This will be until the year 2140 and after that, there will be no bitcoins will be generated or will get mined.

Where can I use the Bitcoin?

You can use this Bitcoin when you are doing shopping or anything and this bitcoin can be used in fractions it means if you are using Bitcoin to pay something then you can pay them in fractions.

If you are having 1 Bitcoin then your Bitcoin wallet will show 1.0000000 suppose if you want to buy a headphone which is of 2$ and you can use that Bitcoin to shop and you can use that bitcoin infractions for example 0.99999994 (Approx). It means you can use in fractions of money.

It is necessary if you are having a Bitcoin so the one you are giving the Bitcoin should support accepting the Bitcoin. The Bitcoin is not supported everywhere. We have to do Peer to Peer transaction.

What is Bitcoin Mining?

Now, If a government needs to print currency they can print as much currency they want and even there are a specific rule and regulations they need to follow. But not in the case of Bitcoins.

You can earn and mine unlimited Bitcoins. For example, if you want to mine a Bitcoin then you need the fastest computer and a GPU, not the CPU.

Now, those are some Math problem which is needed to be solved if you want to mine that Bitcoin. Now, for mining that Bitcoin there will be some reward provided to you which will be the bitcoins.

Now, previously some old computers were used to mine the Bitcoin. There was an old IBM computer which was used to mine the Bitcoin. But the thing is that it is not very much effective for mining. You hardly earn any money from it.

Now, if you want to make and earn faster Bitcoin then you need to get a faster and superb working hardware which will cost a lot of money. If you have to have a computer which is having a good specifications then you can also do that mining easily. Here your Graphic card will be used for mining the Bitcoins.

But the thing is that it will destroy your computer life and you won’t get proper performance and that computer will be only used for mining Bitcoins. You can’t do anything else.

Now if you are mining Bitcoins using Supercomputer then you need to know the following formula given below.

It means that if you are using a computer which is consuming 650$ monthly and you are earning 400$ every month then believe me it is of no use.

This is something which is just consuming your electricity. In return you are not getting any money then it is of no use at all and you will pay your electricity bills rest of your life.

Now, to solve that Math problem you need a chip called as ASIC and it is also called as Application Specific Integrated Circuits. This will automatically solve the math problem and mine some coins for you. This requires a lot of memory and electricity. Which is real of no use at all.

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About Xaif

Xaif is the founder and administrator of DroidRax. A tech Enthusiast. Who writes mostly about Technology and Android. He works hard to serve you with best tips and tricks and to satisfy your hunger to technology. He mostly updates Android Tricks, How-to, News, and Scripts. He is a Freelancer. You can find him on Twitter

Wow very detailed post. Appreciate your work. Thanks for sharing this best knowledgeable post. I really learned something from this post ! I love to read XtremeTricks. Best topics , contents and almost all things. Salute Xaif !!

Man Behind DroidRax

Xaif is the Founder and administrator of DroidRax. A Tech Enthusiast. Who writes mostly about Technology and Android. He works hard to serve you with Best Tips and Tricks and to satisfy your hunger to Technology. He mostly updates Android Tricks, How-to, News, and Scripts. He is a Freelancer. You can find him on Twitter